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<br /> OIL AND GAS LEASE
<br /> Containing iqoo Printed Words
<br /> Producers 88 Special F.L.B, t-q2
<br /> 21897—The Augustine Co., County Supplies, Grand Island, Nebr..
<br /> FROM THE STATE OF NEBRASKA
<br /> ss.
<br /> James P.Klinkacek, single Hall County,
<br /> I hereby certify that this instrument was entered on Numerical Index, and filed
<br /> TO for record this 23 day of �aa,T'CYl 9 42 .
<br /> at 3:'J� o'cloclz P, M. ����.t ���
<br /> J.A.�owland Register of Deeds.
<br /> Deputy.
<br /> . � Fees, $ 2. 5�
<br /> t
<br /> AGREEMENT, Made and entered into the 2�tr1 day of January . 19 �-2
<br /> by ancl between James P.Klinkacek, a. single man
<br /> of Shelton, Nebraska hereinafter callecl Iessor (wliether one or more), and
<br /> J.A. RO WI.�3 ri C1� — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — hereina f ter called lessee:
<br /> ' WITNESSETH: That tlie said Zessor, f or and in consideration o) O n e & No/100 - - - - - - - - - - - - - - - Dollars,
<br /> cash in hancl paid, the receipt of wl�ich is hereby acknowledged, and of the covenants and agreements hereinafter contained on part of lessee to be paid, kept and per-
<br /> formed, has granted, demised, Teased and let and by these presents does grant, demise, Iease and let unto the said lessee for the sole and only purpose of exploring by
<br /> geophysical and other methods,mining and operating for oil and gas and of laying of pipe lines, and of building tanks,powers,stations and structures tliereon to produce,save
<br />, and take care of said products, all tTiat certain trnct of land situate in the County of H�11 State of Nebraska des�rabed �
<br /> «s {o�lows, to-wtt:
<br /> The South East Quarter of the South East �,uarter of Section Fifteen (15) , the West
<br /> Half of the North West Quarter of Section T���enty-TT,ao (22) and all tha.t part lying
<br /> south of the C.3. & Q.R.R. in the South West 4,uarter of Section Ten (10)
<br /> � '
<br /> �
<br /> 15, ?_2 � 10
<br /> of Section8 Tou�nsliip 12 N. Range 1.2 ?V1]. ancl containing �.77j acres, more or less. It is agreed that this lease shall remain in force
<br /> for a term of t E?r1 years from tliis date, and as long t�iereafter as oil or gas or either of tl�em is produced from said Iand by lessee. �
<br /> In consideration of the premises the said Iessee covenants and agrees:
<br /> ist. To cleliver to the credit of Iessor, free of cost, in the pipe Iine to which lessee mny connect wells on said land, the equal one-eighth part oF all oil produced and �
<br /> saved f rom tl�e Ieased premises.
<br /> 2nd. To pay Iessor one-eightTi (1/a� of tl�e 9ross proceeds each year, payable quarterly, f or the gas f rom each well wl�ere gas only is f ound, while t�e same is being
<br /> t used off the premises, and if used in the manufacture of gasoline a royalty of one-eightl� (�/a), payable monthly at the prevailing market rate for gas; and lessor to have �
<br /> gas free of cost from any suc� well for aIl stoi�es and all inside lights in the principal dwelling on said land during the same time, by making Iessor's own connections with V
<br /> \
<br /> the well at lessor's own risk ancl expense.
<br />'i grd. To pay lessor for gas proc�ucecl from any oil well and usec� off tTie premises or in tlie manufacture of gasoline or any other proc�uct a royalty of one-eighth
<br /> (1/s) of the proceeds, at the mout� of the well, payable monthly at tlie prevailing marizet rate.
<br /> If no u�ell be eommeneecl on saicl Iancl on or before the 2�t',r1 c�ay of January t9 43 , this lease shall terminate
<br /> as to both parties, unless the lessee shall on or before that date pay or tender to the lessor or to the lessor's credit in the �`�-,�te Bank Of' Cairo
<br /> Bank at C�iro, N2bT'a Sna , or its successors, wliicT� shall continue as tlie depository regardless of changes in the ownership of said land, the sum
<br /> of Thirty Four 8c 60�1�� — — — — — — — — — — — dollars, which shall operate us a rental and cover the privile9e oF deferring the
<br /> commencement o f n well f or t��e 1 v e months f rom said date. In lilze m anner ancl upon like payments or tenders, the commencement o f a well may be f urther
<br /> deferred for Iike periods of the same number of month.s successively. And it is understood nncl agreed t/iat the consideration first recited herein, tlie down payment, covers
<br /> not only tTie privilege grantecl to the clnte wlien snid first rental is pnyable as aforesnic�, but also tlie lessee's option of extending tFiat period as aforesaid, ancl any and nll
<br /> other rigTits conferred.
<br /> Should the first well c�rillec�on tl�e above c�escribec�Iancl be a dry I�ole, tTien, ancl in t�iat event, if a seeoncl well is not commencecl on saicl Iancl witliin tiuelve months
<br /> from the expiration of the Last rental perioc� for which rentnl has been paic�, this lease shall terminate as to both parties, unless t�ie lessee on or before the expiration of
<br /> snid twelve montl�s sliall resume the payment of rentals, in the same amount and in the same manner as hereinbefore provided. And it is agreed that upon tlie resumption
<br /> Iof tjie payment of rentals as above provided, that tlie last precec�ing paragraph hereof governing the payment of rentals and the effect thereof, sliall continue in force just
<br /> as tTiough there had been no interuption in the rental payments, and if the lessee shall commence to drill a well within the term of this lease or any extension thereof, the
<br /> Iessee sTiall have the right to clrill sucli well to completion witli reasonable diligence and dispatch, and if oil or gas, or eitl�er of them, be found in paying quantities, tl�is
<br /> rease shall continue and be in force with the lilze ef fect as if such well had been completec�within tlie term of years first mentionecl.
<br /> If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate tlierein, then the royalties and rentals herein provided
<br /> f or shall be paid tl�e said lessor only in the proportion which lessor's interest bears t o the whole and undivided f ee.
<br /> Lessee shall have the right to use, free of cost, gas, oiI and water produced on said land for lessee's operations thereon, except water from the wells of lessor.
<br /> Wlien requested by Iessor, lessee shall bury Iessee's pipe lines below plow depth.
<br /> 1Vo well shall be drillecl nearer than 20o feet to the house or barn now on saicl premises witliout written consent of lessor.
<br /> Lessee shall pay for c�amages causecl by lessee�s operations to growing crops on saic� land.
<br /> Lessee shall have the right at any time to remove all machinery and fixtures placecl on said premises, including the right to draw and remove casing.
<br /> If the estate of eitTier party hereto is assigned�and the privilege of assigning in whole or in part is expressly allowed�the covenants hereof sharr extend to their
<br /> heirs, executors, ac�ministrators,successors or assigns, but no change in tlie ownership o f the Iancl, or nssignments of rental or royalties sliall be bincling on tjte lessee until
<br /> after the lessee has been furnishec� with a written transfer or assignment or a true copy thereof; ancl it is �iereby agreect that in the event this lease s�all be assigned as to
<br /> a part or as to parts of the above cleseribecl lands anc�tl�e assignee or assignees of suc�i part or parts sTiall fail or malze clefault in the payment of the proportionate part of
<br /> the rents due from him or them, sucli default shall not operate to defeat or af(ect this lease in so far as it co�ers a part or parts of said lands upon which the said lessee or
<br /> any assignee thereof shall make due payment of said rental. In case lessee assigns this lease, in whole or in part, lessee shall be relieved of aII obligations with respeet to
<br /> the assignecl portion or portions arising subsequent to t�e clate of assignment.
<br /> All express or implied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this Iease shall not be
<br /> terminatec�, in whole or in part, nor lessee helc� linble in c�amages, for failure to comply therewith, if compliance is preventec� by, or if such failure is the result of, any
<br /> such. Law, Orc�er, Rule or Regulation.
<br /> Lessor Tiereby warrants anc� agrees to c�efenc�the title to the lancls herein c�eseribec�, anc� agrees that the lessee sTiall liave the right at any time to rec�eem for lessor,
<br /> by payment, an�mortgages, taxes or other Iiens on the above described lands, in tlie event of c�efault of payment by Iessor, anc� be subrogratecl to the rigltts of tlie holcler
<br /> thereof, ancl the unclersignec� lessors, for themselues anc�their �ieirs, sueeessors, and assigns, hereby surrencler nnd release all rigjtt of c�ower and homestead in the premises
<br /> c�escribed herein, insofar as said riyht of dower and homestead may in nny way nf f ect the purposes for which this lease is made,as recited herein.
<br /> IN TESTIMONY WHER80F WE SIGN, Th�s the ��th day of January , ,942 .
<br /> Witnesses: ------------------------------------------------•----i,T�3.T118S---P-._K1.j.TIkaC.��L---------------�------�----�
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